December 1, 2023

To Certify or not to Certify: Third Parties, Necessary Parties, and the Certification of Class Actions in Common Law Canada

Key Points

Class actions are less likely to be certified when third parties are involved, limiting access to justice.
The Ragoonanan rule may impede class certification in cases with third or necessary parties, complicating proceedings.
This analysis reviews the goals of class actions within the context of third and necessary party involvement.
The findings indicate potential reform areas in class certification processes under Canadian common law.

Abstract

Canadian common law courts have taken a handful of approaches in class certification proceedings where third or necessary parties are involved. The caselaw demonstrates that Canadian common law courts have generally been less willing to certify class actions where third parties are involved or where necessary parties have not been named as defendants in the main action. The Ragoonanan rule may also incidentally prevent class certification where there are third or necessary parties. In this paper, the three principal goals of class actions are reviewed and applied to class certification proceedings involving third or necessary parties. Considering the principals of class actions, should the existence of third or necessary parties prevent the certification of a class action?

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